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PRESIDENTIALDECREENo.76December6,1972

REQUIRINGALLPERSONS,NATURALORJURIDICAL,OWNINGORADMINISTERINGREALPROPERTY,INCLUDINGTHEIMPROVEMENTSTHEREON,TOFILESWORNSTATEMENTOFTHETRUEVALUEOF

SUCHPROPERTY

I,FERDINANDE.MARCOS,PresidentofthePhilippines,byvirtueofthepowersvestedinmebytheConstitutionasCommanderinChiefofalltheArmedForcesofthePhilippines,andpursuanttoProclamationNo.1081,datedSeptember21,1972,andGeneralOrderNo.1,datedSeptember22,1972,asamended,andknowing

THAT,valuesof realpropertyand improvements thereinareusuallyunderdeclaredobviously for thepurposeofevadingpaymentofhigherandcorrecttaxesduethegovernment

THAT,although realpropertyand the improvements thereinareundervalued forpurposesof taxation, these realpropertyaresoldtothegovernmentwhenneededforpublicpurposes,suchastheconstructionofroadsandotherinfrastructures,attheirmarketvaluewhichareusuallyten(10)totwenty(20)timesmorethanthevaluedeclaredbytheownersforpurposesoftaxation

and

inorder toeffect thedesiredchangesand reforms, in thesocial,economicandpolitical structureof thecountry,whichisthemainobjectiveoftheNewSociety

herebydecreeandorderthat:

1.Itshallbethedutyofallpersons,naturalorjuridical,owningoradministeringrealproperty,includingtheimprovementstherein,withinacity,municipalityormunicipaldistrict,ortheirdulyauthorizedrepresentative,toprepare,orcausetobeprepared,andfilewiththeprovincialorcityassessornotlaterthanJune30,1973,a sworn statement declaring the true value of their property, whether previously declared or undeclared,taxableor exempt,which shall be the current and fairmarket valueof theproperty, asdeterminedby thedeclarant.

The"currentandfairmarketvalue"shallbeunderstoodtomeanthe"priceatwhichawillingsellerwouldsellandawillingbuyerwouldbuyneitherbeingunderabnormalpressure."

Forpurposesofjustcompensationincasesofprivatepropertyacquiredbythegovernmentforpublicuse,thebasisshallbethecurrentandfairmarketvaluedeclaredbytheowneroradministrator,orsuchmarketvalueasdeterminedbytheassessor,whicheverislower.1awphil.net

Under this Decree, the assessed valuation which shall be the basis for the payment of real property taxbeginning with the calendar year 1973 shall be fifty per centum of the current and fair market value, asdeterminedby theassessor, in thecaseofcommercial, industrialormineral lands fortypercentum in thecaseofagriculturallandsandthirtypercentuminthecaseoflandsforpurelyresidentialpurposes.

All improvements, includingmachineries, shall beassessed independently of landsand their assessmentsshall bemaintainedat their current levels, but inno caseshall such levelsbe lower than theassessmentlevels for landshereinaboveprescribednormore thaneightypercentumofcurrentand fairmarketvalue,exceptforpurelyresidentialhousesusedasresidenceofownersthereoftheassessmentlevelsofwhichareherebyfixedasfollows:

AssessmentLevel CurrentFairMarketValue

15% P30,000.00 or less

20% 30,001.00 to P50,000.00

25% 50,001.00 to 75,000.00

35% 75,001.00 to 100,000.00

45% 100,001.00 to 150,000.00

55% 150,001.00 to 250,000.00

65% 250,001.00 to 350,000.00

75% 350,001.00 to 500,000.00

5% over 500,000.00

2.Everyfiveyearshereafter,revisionofrealpropertyassessmentshallbeundertakenbyprovincialandcityassessors,andnoincreaseinthecurrentassessmentlevel,asdeterminedbytheassessor,atanyonetimeshall be more than ten per centum of the assessment levels mentioned in the foregoing paragraphs:Provided, That the limitation herein fixed on the frequency of assessment revision and increase in

assessment levelsshallnotapply if thenatureof the realestatehasbeenchanged fromrural tourbanorfrom residential to commercial and industrial siteAndprovided, further,That theassessment level of realpropertyshallnotexceedeightypercentumofcurrentandfairmarketvalue,exceptuponpriorapprovaloftheSecretaryofFinance.

3.When real property is found in any city,municipality ormunicipal district, the owner or administrator ofwhichfailedtofiletheswornstatementrequiredunderthisDecreeonorbeforeJune30,1973,theprovincialorcityassessorshallhimselfdeclarethepropertyinthenameofthedefaultingowner,ifknown,oragainstanunknown owner, as the case may be, and shall assess the property for taxation in accordance with theprovisionsofthisDecree.

Nooathshallberequiredofadeclarationthusmadebytheprovincialorcityassessor.

4.Whentheentireassessedvaluationofrealpropertyinanyonemunicipalityormunicipaldistrictbelongingtoasingleownerisnotinexcessoffivehundredpesos,thetaxthereonshallnotbecollectedthoughinanyeventthepropertyshallbevaluedforthepurposesofassessmentandrecordshallbekeptthereof.

5.AllexistingtaxdeclarationsasofDecember31,1973shallbesupersededbythecorrespondingnewtaxdeclarations issued under this Decree. Collections, however, of delinquent real property taxes as ofDecember 31, 1973 shall be computed on the basis of the assessed value and rates of penalty thenobtaining.

6.Toachieveauniformappraisalofrealproperty,provincialandcityassessorsshallprepareascheduleofcurrent and fairmarket value of different classes of real property in their respective jurisdictions, using asguidetheinstructionsprescribedintheimplementingrulesprescribedbytheSecretaryofFinance.CopiesofthescheduleofmarketvaluesshallbefurnishedbytheSecretaryofFinancenot later thanSeptember30,1973andthesameshallbeadoptedforuseunderthisDecreeunlessmodifiedorrevisedbytheSecretaryofFinanceonorbeforeNovember30,1973.

7.Anyownerwhoisnotsatisfiedwiththeactionoftheprovincialorcityassessor intheassessmentofhisproperty under thisDecreemay,within sixty days from the date of receipt by him of thewritten notice ofassessment, appeal to the Board of Tax (Assessment) Appeals of the province or city, which shall becomposed of threemembers: theRegister of Deeds, asChairman, the Provincial or City Auditor and theProvincialorCityEngineer,asMembers,whoshallserveassuchintheexofficiocapacitywithoutadditionalcompensation.

TheProvincial orCityBoard of Tax (Assessment) Appeals shall decide the appealwithin sixty days fromreceiptthereof.ThedecisionoftheBoardshallfullyrecitetheconsiderationuponwhichitisfounded.Uponreceiptofthedecision,theProvincialorCityAssessorshallthereuponactaccordingly.If,however,theowneror administrator of the property or the assessor be not satisfied with the decision of the Board of Tax(Assessment) Appeals, hemaywithin thirty days after receipt of the decision of theBoard, appeal to theCentral Board of Tax (Assessment) Appeals, composed of the Secretary of Finance, as Chairman, theSecretaryof Justiceand theSecretaryofLocalGovernmentsandCommunityDevelopment, asmembers,whosedecisionshallbe final.SaidCentralBoardofTax(Assessment)Appealsshallpromulgaterulesandregulationsgoverningtheprocedureinsuchappeals.

Theappeals,however,shallnotsuspendthecollectionsofthecorrespondingrealtytaxesasassessedbytheprovincial,orcityassessor,withoutprejudicetosubsequentadjustmentdependinguponthefinaloutcomeoftheappeal.

8.ToeffectivelyimplementtheobjectiveofthisDecree,provincial,city,municipalormunicipaldistrictboardsor councils shall provide the necessary appropriations to underwrite or defray expenses incident thereto,usingforthepurposeanyunappropriatedbalancesinthegeneral,roadandbridgeand/orpermanentpublicimprovement funds any underestimated revenues accruing thereto or reversions of unauthorizedappropriations in their respective budgets which are not otherwise urgently needed, existing laws to thecontrarynotwithstanding.

9.Anyincreaseinthesharesofprovinces,cities,municipalitiesandmunicipaldistrictsfromtheadditionalonepercentumrealtytaxleviedandapportionedunderRepublicActNo.5447,accruingtotheirrespectivelocalschoolboardscommencingwith fiscal year197374overwhathasbeenactually realizedduring the fiscalyear 197172which, for purposes of thisDecree, shall remain as the base year, shall be divided equallybetweenthegeneralfundandspecialeducationfundofthelocalgovernmentunitsconcerned.TheSecretaryofFinancemay,however,athisdiscretion, increase tonotmore thanseventyfivepercentumtheamountthatshallaccrueannuallytothelocalgeneralfund.

10.Failuretopaytherealpropertytaxbeforetheexpirationofthetermsforthepaymentwithoutpenaltyofthequarterlyinstallmentthereof,shallsubjectthetaxpayertothepaymentofapenaltyequivalenttotwopercentum on the amount of the delinquent tax for each month of delinquency or fraction thereof until thedelinquent tax shall be fully paid:Provided,That in no case shall the total penalty exceed twentyfour percentumofthedelinquenttax.Therateofpenaltyfortaxdelinquencyfixedhereinshallbeuniformlyappliedinallprovincesandcities.

11.Anyonewhoshallknowinglymakefalsedeclarationconcerninganypropertyorwhoshalldeliberatelyfailto file the sworn statement required in thisDecree shall, upon conviction, pay a fine of not less than fivehundredpesosnormorethantenthousandpesos.Iftheoffenseiscommittedbyacorporation,themanagerorpersoninchargeofthemanagementofthebusinessofthecorporationsshallberesponsibletherefor.

Anyofficerchargedwith thedutyofassessing realproperty,whoshallwillfully fail toassess,orshallomitfromthetaxlists,anyrealpropertywhichheknowstobelawfullytaxablepursuanttoandaccordingtothisDecreeshallbepunishedbyafinenotexceedingfivethousandpesos,orimprisonmentofnotmorethantwoyears,orboth,atthediscretionofthecourt.

Any government official or employee who shall intentionally and deliberately delay the filing of the realpropertytaxdeclarationorthefilingofanyappealagainstanassessmentshall,uponconviction,bepunishedbyafineofnotmorethanonethousandpesosorbyimprisonmentofnotmorethantwoyears,orboth,atthediscretionofthecourt.

12.TheSecretaryofFinance isherebyordered to formulate the implementing rulesand regulations tobefollowedbyallProvincialandCityAssessorsfortheimmediateandsuccessfulimplementationofthisDecree.

ThisDecreeshall formpartof thelawsofthelandandshall takeeffect immediatelyafter itspublication.All laws,rulesandregulationswhichareinconsistentwiththisDecreeareherebyrepealed.

DoneintheCityofManila,this6thdayofDecember,intheyearofOurLord,nineteenhundredandseventytwo.

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